What is remittance advice?
Essentially, remittance advice is used by a customer to inform a business that they have paid an invoice. Despite not being mandatory, many businesses choose to use remittance advice slips as they give more clarity around the invoicing process, and help ensure that your suppliers are always able to match a payment with an invoice.
For business owners, issuing remittance advice is helpful for keeping good relationships with your suppliers and making sure that you receive your goods and services on time.
Although we’re moving towards online payments becoming the norm, and remittance advice slips might become obsolete one day, remittance advice will always be helpful for your suppliers.
What should you include in a remittance advice slip?
The most important things to put in your remittance advice are:
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Business name and address
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Supplier’s name and address
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Invoice number
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Amount paid
- Contact information (for supplier questions)
Is remittance advice always required?
In short, no. You aren’t obliged to send remittance advice with all invoices you pay. However, your suppliers will always appreciate the effort because it’s very useful to help them tie payments with different accounts.
It’s best practice to make sending remittance advice slips a normal part of your invoice payment process.
What are the different types of remittance advice?
There are a few different types of remittance advice:
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Basic – a note or letter with the invoice number and the amount paid.
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Removable invoice advice – An invoice with a removable remittance slip that customers fill in.
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Scannable remittance advice – Remittance slips that can be scanned for electronic records.
How should you send remittance advice?
When sending a remittance advice slip to your customers, there are two main options: email or post. The best option is usually email, as you will have an electronic record of it being sent and it will arrive much faster. It’s best to ensure that you are sending to the correct email inbox, which will usually be accounts payable.
